Product Break Even Timeline
Calculator
Results
- Break-even month
- 11 mo
- Cumulative profit
- $1,983,072.09
- Unit contribution margin
- $55.00
- Monthly break-even units
- 163.636363 units
Projected path over the horizon
- Cumulative profit
- Revenue
Period-by-period projection
| 1 | 300.00 | 23,700.00 | 7,500.00 | -142,500.00 |
| 2 | 321.00 | 25,359.00 | 8,655.00 | -133,845.00 |
| 3 | 343.47 | 27,134.13 | 9,890.85 | -123,954.15 |
| 4 | 367.51 | 29,033.52 | 11,213.21 | -112,740.94 |
| 5 | 393.24 | 31,065.87 | 12,628.13 | -100,112.81 |
| 6 | 420.77 | 33,240.48 | 14,142.10 | -85,970.70 |
| 7 | 450.22 | 35,567.31 | 15,762.05 | -70,208.65 |
| 8 | 481.73 | 38,057.02 | 17,495.39 | -52,713.26 |
| 9 | 515.46 | 40,721.01 | 19,350.07 | -33,363.19 |
| 10 | 551.54 | 43,571.48 | 21,334.58 | -12,028.61 |
| 11 | 590.15 | 46,621.49 | 23,458.00 | 11,429.39 |
| 12 | 631.46 | 49,884.99 | 25,730.06 | 37,159.45 |
| 13 | 675.66 | 53,376.94 | 28,161.16 | 65,320.61 |
| 14 | 722.95 | 57,113.33 | 30,762.44 | 96,083.05 |
| 15 | 773.56 | 61,111.26 | 33,545.81 | 129,628.86 |
| 16 | 827.71 | 65,389.05 | 36,524.02 | 166,152.88 |
| 17 | 885.65 | 69,966.28 | 39,710.70 | 205,863.59 |
| 18 | 947.64 | 74,863.92 | 43,120.45 | 248,984.04 |
| 19 | 1,013.98 | 80,104.39 | 46,768.88 | 295,752.92 |
| 20 | 1,084.96 | 85,711.70 | 50,672.70 | 346,425.62 |
| 21 | 1,160.91 | 91,711.52 | 54,849.79 | 401,275.42 |
| 22 | 1,242.17 | 98,131.33 | 59,319.28 | 460,594.70 |
| 23 | 1,329.12 | 105,000.52 | 64,101.63 | 524,696.32 |
| 24 | 1,422.16 | 112,350.56 | 69,218.74 | 593,915.07 |
| 25 | 1,521.71 | 120,215.10 | 74,694.05 | 668,609.12 |
| 26 | 1,628.23 | 128,630.15 | 80,552.64 | 749,161.76 |
| 27 | 1,742.21 | 137,634.26 | 86,821.32 | 835,983.08 |
| 28 | 1,864.16 | 147,268.66 | 93,528.82 | 929,511.90 |
| 29 | 1,994.65 | 157,577.47 | 100,705.83 | 1,030,217.73 |
| 30 | 2,134.28 | 168,607.89 | 108,385.24 | 1,138,602.97 |
| 31 | 2,283.68 | 180,410.44 | 116,602.21 | 1,255,205.18 |
| 32 | 2,443.53 | 193,039.18 | 125,394.36 | 1,380,599.55 |
| 33 | 2,614.58 | 206,551.92 | 134,801.97 | 1,515,401.51 |
| 34 | 2,797.60 | 221,010.55 | 144,868.11 | 1,660,269.62 |
| 35 | 2,993.43 | 236,481.29 | 155,638.87 | 1,815,908.49 |
| 36 | 3,202.97 | 253,034.98 | 167,163.59 | 1,983,072.09 |
Comparison
| Scenario | Break-even month | Cumulative profit |
|---|---|---|
| Doing nothing | 20.00 | 120,000.00 |
| Your scenario | 11.00 | 1,983,072.09 |
Formula
cum_t = −D + Σ [u₀(1+g)^(i−1)·(p − v) − F]= 11.00
Note
Simplified model: this is the exact arithmetic of the stated recurrence applied to your inputs, with every rate held constant for the whole horizon. Real businesses see growth, churn, seasonality and costs move, and no projection accounts for competition, financing terms, tax or one-off events. Treat the crossing month as an order of magnitude, not a date, and check it against your own books before committing money.
More in Business projections
See all →Frequently asked questions
What exactly is being broken even here: cash, or accounting profit?+
This calculator projects when cumulative revenue from the product first exceeds cumulative costs (development plus ongoing costs), which is a cash/cumulative view rather than a single period's accounting profit. A product can show a profitable month while the project as a whole is still below break-even if it hasn't yet recovered its upfront development cost.
Should I include the initial development cost as a one-time expense or spread it out?+
Enter it as a one-time upfront cost incurred before revenue starts, since that's when the cash actually left the business, rather than spreading (amortizing) it artificially across future months. Amortizing it would understate early losses and delay when the calculator flags true break-even.
Why does a small increase in monthly unit sales pull the break-even date in by so much?+
Because break-even timing depends on the gap between monthly revenue and monthly costs, and that gap is usually a small fraction of total revenue; a modest sales increase can proportionally shrink the time needed to close a fixed cost gap much faster than the sales increase itself would suggest. This is also why the reverse is true: a small sales shortfall can push break-even out by months, not weeks.
What ongoing costs should I include beyond the initial build cost?+
Include hosting, support, ongoing maintenance and any per-unit costs (like payment processing fees or a supplier cost) as recurring monthly costs, since these continue to accrue against revenue even after launch. Leaving them out will make the break-even date look earlier than it will actually be once the product is live and generating support tickets or transaction fees.
My break-even timeline moved out after I added a marketing budget — is the tool double-counting?+
No, that's expected: marketing spend is a real, additional monthly cost that must be recovered by the additional revenue it generates before the product breaks even. If adding marketing spend didn't push out the break-even date at all, it would suggest the marketing isn't being paired with a matching revenue assumption in the calculator's inputs.